Havelock North rate rises upset businesses

Business owners are talking of leaving Havelock North because of massive rates hikes for commercial and industrial properties.
Building owners say huge variations in rates increases have resulted from erratic valuations for the properties.
John Forster, who owns a building on Coopers St, said there were major discrepancies in the valuations.
For three adjoining buildings in nearby Donnelly St, one valuation went up 59 per cent in land value, one had no increase and the third rose by 37 per cent.
"Business is down yet rates are going up as much as 80 per cent," Mr Forster said. "I cannot see how this can be justified.
"In Havelock North 99 per cent of the leases have the tenants paying the rates.
"One business told me 'I'm just waiting for my lease to expire and I'm off'."
Campbell Thornton, of Thornton Real Estate on Donnelly St, said many of his neighbours were upset.
"Council is going to be the only ones making money in this recession," he said.
The valuations were carried out for Hastings District Council by Quotable Value (QV), as part of a three-yearly review required by law.
Hawke's Bay manager for QV, Bevan Pickett, said he was surprised at the reaction.
"Of the 56 valuations notified there were only four objections, and only two of those wanted their land value decreased," he said.
When rating valuations were revised late last year it was considered that 2007 values did not reflect the 2010 market, so individual consideration was given, he said. "This allowed each property to be valued on its individual characteristics making allowances for features such as locality, frontage, size, shape, access etc."
The valuations had been audited by the government Office of the Valuer General.
The availability of property in the traditional central commercial area of Havelock North was now scarce, Mr Pickett said.
"We have seen a change in use for many properties that had previously been industrial and service to more intensive commercial uses.
Businesses seeking blocks in fringe business district localities tended to favour larger sites which provide for larger footprints, carparking and street advertising and profile.
"The real estate profession refers to this as plottage, whereby the higher values per square metre will tend to be associated with the bigger blocks with more development potential. This is well illustrated by the sales of land for the Pak'nSave and McDonald's sites on industrial zoned land."
Cam Ward, of commercial real estate agent Colliers International, said Havelock North commercial real estate had recorded few sales lately but the last two land sales had been at "phenomenal" prices.
The Nimon Bus depot in Martin Pl and Karanema Drive sold for $9 million dollars in April 2008 which equated to $556 m/sq. A bare site on Porter Dr sold for $721,000 in December 2009 - $682 m/sq. The per metre increase in the land value was over 22.6 per cent for the period.
Hastings District Council chief financial officer Tony Gray confirmed that some Havelock North commercial property owners faced a rates rise greater than the district average of 2.92 per cent. "The share of the district rate apportioned to each property owner is determined by the land value of their property," he said.
Mr Forster will discuss the changes at a meeting of property owners with a representative from Quotable Value (QV) today.
A public meeting will also be held with council tomorrow.